Economy
From The Report: Bahrain 2024
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Bahrain’s economy is experiencing growth, guided by Bahrain Economic Vision 2030, the kingdom’s long-term socio-economic development plan, and driven by a dynamic private sector and rising foreign investment. Relatively low inflation and interest rate cuts in September and November 2024 enhance its appeal as a business destination. The country’s robust financial services sector supports private sector diversification, while the Central Bank of Bahrain fosters a favourable fiscal and regulatory environment, focusing on start-ups and small and medium-sized enterprises. Multi-sector growth has insulated the economy from global energy price fluctuations, a trend likely to continue with ongoing infrastructure development and talent investments. Despite fiscal challenges and sector declines, Bahrain’s investment-friendly environment, along with a future-ready workforce, positions the kingdom well to attract more international companies. Additionally, deepening the stock markets is a priority to diversify the economy and further boost growth in the coming years.

This chapter includes interviews with Abdulla bin Adel Fakhro, Minister of Industry and Commerce; and Shaikh Abdulla bin Khalifa Al Khalifa, CEO, Bahrain Mumtalakat Holding Company.

Articles from this Chapter

Overview

Diverse offerings: A shift away from hydrocarbons is helping to boost other sectors
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Buoyed by a vibrant private sector and increasing interest from foreign investors, Bahrain’s economy is on an upward trajectory. Relatively low inflation has added to the kingdom’s appeal as a place to do business, while interest rates were lowered successively in September and November 2024 to 5.25% (see Banking chapter). Indeed, an advanced financial services sector provides a strong foundation for business growth, as well as supports the diversification of the private sector. The Central Bank…

Interview

Smart development: Abdulla bin Adel Fakhro, Minister of Industry and Commerce, on the scope for new technologies to enhance manufacturing, and how the public and private sectors can boost industrial capacity
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Interview:Abdulla bin Adel Fakhro What steps is Bahrain taking to bolster its competitiveness as an investment destination, particularly in industry and manufacturing? ABDULLA BIN ADEL FAKHRO: The government’s Industrial Sector Strategy 2022-26 envisions a developed and sustainable industry landscape built upon innovative and advanced technologies. The strategy aims to bolster the industrial sector’s contribution to GDP, boost its exports and create high-quality job opportunities for…

Analysis

Progressing forwards: The kingdom continues to demonstrate economic resilience
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Bahrain launched its Covid-19 Economic Recovery Plan (ERP) in October 2021 to address the economic stresses that arose during the Covid-19 pandemic, and to keep the kingdom on track to achieve the goals of Bahrain Economic Vision 2030. Workforce strengthening and job creation is one of the ERP’s five central pillars, with the government intent on cultivating a local talent pool equipped to compete in the global information economy. The other key elements of the ERP are developing priority sectors;…

Interview

Renewed focus: Shaikh Abdulla bin Khalifa Al Khalifa, CEO, Bahrain Mumtalakat Holding Company (Mumtalakat), on efforts to attract investment in sustainable and green technologies
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Interview: Shaikh Abdulla bin Khalifa Al Khalifa How is Bahrain positioning itself to encourage funding in sustainable and green technologies? SHAIKH ABDULLA BIN KHALIFA AL KHALIFA: Bahrain is actively seeking investment in sustainable and green technologies to fulfil its environmental responsibilities and sustainable development goals. By emphasising renewable energy, eco-friendly infrastructure, and sustainability-driven projects, Bahrain demonstrates its commitment to environmental sustainability…

Analysis

The competitive edge: Harnessing artificial intelligence technology to bolster economic growth and strengthen sustainability in the region
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As part of ongoing efforts to diversify their economies and build a platform for sustainable future growth, MENA countries are increasingly turning to artificial intelligence (AI). A slew of recent investment and initiatives – primarily in academia and the government, but also in the private sector – has reinvigorated interest from industry leaders around the globe in the potential for AI to strengthen the efficiency and sustainability of MENA economies. AI could bring about an additional $320bn…